Legal Question in Business Law in Maryland

What are my legal rights to jointly owned business with husband?

mY HUSBAND, MYSELF AND HIS DAUGHTER FROM A PREVIOUS MARRIAGE OWE 1/3 OF A SUCCESSFUL REAL ESTATE COMPANY WHICH WE BEGAN IN 1998. MY HUSBAND AND I SEPERATED IN 2000. SINCE THAT TIME HE AND HIS DAUGHTER HAVE BEEN TAKING ALL PROFIT AS INCOME AND I HAVE RECEIVED NOTHING. MY HUSBAND PAYS HIS CAR PAYMENT AND INSURANCE AND OTHER PERSONAL BILLS THROUGH THE BUSSINESS. WE WERE RECENTLY IN COURT FOR THE DIVORCE PROCEEDINGS AND FOUND THAT HE IS ACTUALLY TAKING ABOUT $250,000 MORE OUT OF THE BUSINESS THEN HE CLAIMS ON HIS INCOME TAX. HE IS ALSO FUNNELING MONEY OUT OF THE BUSINESS INTO ACCOUNTS HELD IN HIS DAUGHTERS NAME. MY ATTORNEY AND I HAD THE BUSINESS APPRAISED AND THEY CAME UP WITH MY SHARE BEING WORTH APPROX. $75,000.

WHAT ARE MY RIGHTS AS A 1/3 OWNER OF THIS BUSINESS. DO I HAVE ANY CONTROL OVER THE CASH FLOW AND AM I ENTITLED TO ANY OF IT?


Asked on 9/16/02, 3:58 pm

3 Answers from Attorneys
RAYMOND CARIGNAN Raymond Carignan, Esq, LLC

Re: What are my legal rights to jointly owned business with husband?

Is the business incorporated?

DO you own shares?

how much did you invest in the business?

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Answered on 9/16/02, 5:10 pm
Robert Beatson, II Law Offices of Robert Beatson, II

Re: What are my legal rights to jointly owned business with husband?

Additional facts need to be developed here concerning the structure of the business entity as well as the conduct of business operations. It is likely that you would have enforceable legal rights here with respect to the business operations. There are MD business law and Federal/MD tax law issues that need to be carefully worked through. An experienced business/tax attorney should be able to handle this under MD law. Please note that, in accordance with the MD Code of Professional Ethics applicable to attorneys, my legal services are available only with a signed engagement agreement. If I can be of any help to you or people you know, give me a call as I would be pleased to provide legal/tax support. Sincerely, Robert Beatson, II; 9-16-2002, 9:40 p.m. EST; Law Offices of Robert Beatson, II; 9818 Glynshire Way, Potomac, MD 20854; Tel/Fax 301-340-2951; email: [email protected]; website: www.beatsonlaw.com; Licensed to practice law in DC, MD, VA, and NY.

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Answered on 9/16/02, 9:09 pm
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: What are my legal rights to jointly owned business with husband?

The form of the business entity is fundamental to your issue as well as the form of your ownership interest.

There are numerous factors at work here and you should discuss this with an attorney. I assume that your present attorney

is assisting you solely with a divorce and is not able to assist you with these business matters. As I stated, you need to gain further

information before you can make an intelligible decision as to whether you may or may not want to accept a purchase of your interest in the business.

This is as much of a business decision as it is a legal matter.

Moreover, depending on the way that you file your taxes, you may be exposed to tax liability as it appears that prudent tax practices are not being applied.

IT IS STRONGLY SUGGESTED THAT YOU SEEK THE ASSISTANCE OF AN ATTORNEY WHO IS KNOWLEDGABLE OF THE MATTERS YOU ARE NOW FACING.

G. Joseph Holthaus

(410) 799-9002

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Answered on 9/18/02, 2:05 pm


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